To maintain economic giants, the tech giants are reducing their existing workforce. The first month of the new year started with huge layoffs of nearly 3000 workers from different sectors. The financial infrastructure provider Prime Trust reportedly initiated a step to cut the workforce.
The leading big tech companies like Twitter, Meta, Apple and Microsoft fired hundreds of workers. At the end of November, US-based firms announced 76,835 job cuts.
The tech giants removed half of the workforce to reduce the company’s revenue loss, while some firms froze hiring. “Even the most marginal, newly public enterprises just keep chugging along. You would think some of these SPAC names would run out of money soon,” Cramer added.
The US-based crypto exchange Coinbase initiated the first crypto layoffs of the year. On Jan 10, Coinbase announced layoffs of nearly 940 workforces. Luno, Crypto.com and Huobi announced the reduction of their workforce to 340, 500 and 300 workers.
In Nov, Mercado Bitcoin announced the layoff of 15% of its employees or nearly 100 members. Other crypto-related companies in Latin America that have announced layoffs include Bitso, Mercando Bitcoin’s main competitor in Brazil, and Argentina-based exchange Buenbit.
In the mid of Jan, IBM, Spotify, Intel and Alphabet cut 4000, 600, 544 and 12.000 jobs respectively.
Jim Cramer was sure about there will be many layoffs after Christmas
Earlier, CNBC’s Mad Money host Jim Cramer predicted that many companies would reduce their workforce after the Christmas holidays to maintain economic stability.
Jim Cramer said, “I am sure there will be many layoffs after Christmas. I don’t want to finger-point at the retailers who are most likely to be thrown into bankruptcy when the holidays are over, but I do want people to realize that, in a way, our current high-inflation economy is a high-quality problem.”
Major tech firms’ layoff announcement
The CEO of Metaverse, Mark Zuckerberg, announced that 11% (11,000) was laid off in an emotional message on Nov 9. As per The Coin Republic, Facebook and Instagram had more than 87,000 employees. Explaining the layoffs, Zuckerberg said that the company had faced huge losses.
Twitter CEO Elon Musk laid off 50% of its employees, explaining that Twitter was facing a loss of $4 million per day.
The CEO of Microsoft, Satya Nadella, said layoffs were necessary because of “Macroeconomic conditions and changing customer priorities.”
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/01/31/crypto-firms-are-reducing-their-existing-workforce/